Invest in a vacation rental in these American winter getaways! As the temperature drops, so do property prices in most cities of the US housing market, making winter the best time of year to buy a rental property. So, if you’re looking to take advantage of the lower prices and buy a vacation rental, go for it! However, where to invest in real estate is still something you need to consider. Some vacationers head towards snowy cities, while others prefer to escape the cold and travel to warmer locations.
In this article, we feature the top 8 cities in the US to buy a vacation rental for a warm winter according to Mashvisor’s investment property calculator. These locations provide high rental demand, an attractive rental income, and positive cash flow. While short-term rentals are legal in all of the following cities, we encourage you to check the regulations that apply to your city of choice.
Key West, Florida
Florida is dominant in our list of best places to invest in a vacation rental for a warm winter. Key West, in particular, is one of the most popular tourist destinations, not only in the US but worldwide. All year round, demand for weekly and monthly vacation rentals is high in this tropical paradise. For an Airbnb real estate investor, this means high occupancy rate, high rental income, and positive cash flow.
Winter is typically Key West’s busiest season for vacation home rentals. In the wintertime, Key West enjoys a mild temperature and sunny skies, making it a perfect destination to warm up your winter. Property investors should use this to their advantage. Looking at our data, you can see that while Key West investment properties are expensive, they’re definitely profitable.
- Median Property Price: $870,842
- Price Per Sq/Ft: $698.66
- Airbnb Rental Income: $8,366
- Cash on Cash Return: 7.03%
- Airbnb Occupancy Rate: 74.75%
Moreover, you can still find affordable Key West rental properties for sale using our Property Finder. For example, we found a low-maintenance, two bedroom condo located in Key West Old Town, with a listing price of $435,000 and an Airbnb cash on cash return of a whopping 13.12%. This condo is the perfect vacation rental any real estate investor would want to invest in!
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Saint Augustine Beach, Florida
The Nation’s Oldest City, Saint Augustine, is filled with history and tourist attractions that draw many visitors. Minutes away from Historic Downtown is Saint Augustine Beach. Wintertime in this area is short, sees little rain, and enjoys delicious temperatures at around 70 – 80 degrees. For Airbnb property investors, this is peak season and the best time to buy a vacation rental property to generate rental income.
The best thing about Saint Augustine Beach investment properties is that they are quite affordable compared to other cities in Florida. As a real estate investor, you can buy a cottage, condo, or a beachfront property. Your guests will enjoy beautiful ocean views and an outdoor space to take advantage of the warm weather, while you’ll benefit from an attractive rental income and return on investment.
Related: The 7 Best Places to Buy a Vacation Home in Florida
According to data from Mashvisor’s investment property calculator, a Saint Augustine Beach vacation rental has a/an:
- Median Property Price: $366,664
- Price Per Sq/Ft: $202.38
- Airbnb Rental Income: $3,359
- Cash on Cash Return: 5.29%
- Airbnb Occupancy Rate: 66.10%
Mexico Beach, Florida
Mexico Beach, a city in Bay County, Florida, is yet another warm winter getaway. For vacationers, it’s ideal for diving, fishing, sunset strolls, and quality time with friends and family. Due to its location in the North West portion of Florida, the water is warmer year round compared to the Eastern side of Florida. While it may not be as well-known as Panama City Beach or Daytona Beach, it’s still a profitable housing market for a real estate investor to consider when investing in a vacation rental.
The most popular types of vacation home rentals in Mexico Beach include condos, townhomes, cottages, and beach homes. Furthermore, Mexico Beach investment properties are affordable and, due to the high rental demand, can make a profitable rental income leading to a positive cash flow. To start looking for and analyzing rental properties in Mexico Beach, click here!
- Median Property Price: $376,924
- Price Per Sq/Ft: $205.22
- Airbnb Rental Income: $3,236
- Cash on Cash Return: 4.68%
- Airbnb Occupancy Rate: 64.85%
Las Vegas, Nevada
Sin City may be famous for its mega hotels and resorts, but there’s a growing rental demand for alternative lodgings in the city. Families and groups traveling to Las Vegas are turning to rent private homes where they can stay together and split the costs. Thus, this presents an opportunity to invest in vacation home rentals! Furthermore, the demand for vacation rental properties in the Las Vegas real estate market is all year round, not just in the summertime. In fact, winter months welcome an influx of visitors just in time for the New Year to celebrate the holidays on The Strip when the temperature is moderate.
Related: Las Vegas Real Estate Market 2018 – A Good Place to Invest?
- Median Property Price: $381,863
- Price Per Sq/Ft: $187.02
- Airbnb Rental Income: $2,675
- Cash on Cash Return: 4.19%
- Airbnb Occupancy Rate: 54.69%
Clearwater Beach, Florida
Going back to Florida, Clearwater Beach is another year-round vacation destination that a real estate investor should look further into for a warm winter vacation rental. Though cooler water means swimming is off the menu, the weather is still warm for other seaside family-friendly activates and sunbathing. In addition, as a city in Tampa Bay, Clearwater Beach allows for an easy access to city amenities while enjoying a coastal community. Moreover, as one of the highest rated beaches in the US, it has a high vacation rental demand, positive real estate trends, and a profitable environment making it a great place for real estate investing.
- Median Property Price: $894,315
- Price Per Sq/Ft: $491.05
- Airbnb Rental Income: $6,103
- Cash on Cash Return: 3.93%
- Airbnb Occupancy Rate: 64.46%
Though it’s an expensive housing market, Clearwater Beach real estate investors can still find affordable rental properties for sale. Click here to search for and find the best and most affordable vacation home rentals in Clearwater Beach using our Heat Map Tool.
Port Isabel, Texas
Many say that a vacation in Port Isabel is close to a Mexican vacation. Located right on the Gulf of Mexico, the Port Isabel housing market attracts visitors who enjoy exploring a rich culture and classic beach activities. Additionally, this town was voted as the most beautiful place to visit in Texas and one of the best warm winter destinations. While winter in Port Isabel is a little chilly for swimming, it’s perfect for walking and biking.
According to our investment property calculator, vacation rental properties in Port Isabel are affordable, profitable, and have a good occupancy rate during the wintertime. Thus, a real estate investor should definitely consider buying an investment property in this town to rent out on Airbnb.
Related: Top 9 Most Profitable Airbnb Locations with Double-Digit Cash on Cash Return
- Median Property Price: $367,612
- Price Per Sq/Ft: $174.43
- Airbnb Rental Income: $2,129
- Cash on Cash Return: 2.21%
- Airbnb Occupancy Rate: 44.24%
Cocoa Beach, Florida
Located just an hour drive from Orlando and Kissimmee, Cocoa Beach is the perfect vacation destination. Rental demand is high in the city during the wintertime when vacationers enjoy a relaxing warm winter while remaining close to exciting attractions. Property investors can opt to invest in a luxurious condo as a vacation rental or a simple cottage right on the beach. Either way, your investment property will generate high rental income and positive cash flow! Don’t miss the opportunity to find a profitable Cocoa Beach vacation home rental, and click here to start searching!
- Median Property Price: $632,098
- Price Per Sq/Ft: $264.42
- Airbnb Rental Income: $3,553
- Cash on Cash Return: 2.7%
- Airbnb Occupancy Rate: 64.90%
Arizona’s desert climate provides sunshine all year round, and one of the best cities to buy a vacation rental in this state is Mesa! For property investors, Mesa is less expensive than Phoenix and Tempe, but rental demand is just as high making it an ideal choice for real estate investing. In fact, demand is so high in the Mesa real estate market that vacation rental owners don’t have trouble getting bookings in the wintertime.
Related: Marketing Vacation Home Rentals to Increase Bookings
Travelers typically stay in Mesa vacation home rentals as a base from which to explore its neighbor, Phoenix. However, they soon discover that there’s also a lot to do right here in the city. With over 50 public parks, four museums, zoos, and other attractions, Mesa is the perfect destination for a family trip to escape the winter and not worry about rainy days. According to data from Mashvisor’s investment property calculator, Mesa investment properties have a/an:
- Median Property Price: $303,039
- Price Per Sq/Ft: $282.58
- Airbnb Rental Income: $1,657
- Cash on Cash Return: 1.55%
- Airbnb Occupancy Rate: 41.28%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
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